Calculate the Discounted Payback Period

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Question - An investment of P100,000 (including a depreciable asset of P80,000) is expected to enable a company to realize an annual net income of P12,000 for the next ten years. Cost of capital is 12%. Salvage values are as follows:

1st year 20,000

2nd year 18,000

3rd year 16,000

4th year 14,000

5th year 12,000

Required -

1. Calculate the Payback Period?

2. Calculate the Payback Reciprocal?

3. Calculate the Accounting Rate of Return?

4. Calculate the Average rate of Return?

5. Calculate the Payback Bailout Period?

6. Calculate the Internal Rate of Return?

7. Calculate the Net Present Value?

8. Calculate the Profitability Index?

9. Calculate the Discounted Payback Period?

Reference no: EM132945196

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